Property prices

During the 2016-17 period, the PML-N led federal government realised that even though property prices have increased exorbitantly, the government is losing heavily on taxes. Previously, the sale deed would show that the property was sold at the cost price fixed by the Deputy Commissioner (DC) office. This allowed both sellers and buyers to pay less taxes, causing heavy loses to the national exchequer. At that time, banks didn’t have strict requirements. They usually didn’t ask for the depositor’s source of income or the sale deed. The government then decided to re-evaluate the prices and bring them closer to the actual market value. The FBR was given the task of this re-evaluation. The prices of immovable properties were fixed by dividing each city in different categories. Karachi, for instance, was divided into 11 categories.

However, even today, properties are still being sold at much higher prices. How do sellers manage to deposit such a huge amount in their bank accounts is still unknown? In this scenario, the incumbent government is losing as it is being deprived of a large amount of taxes. The authorities should re-evaluate property prices and bring them closer to market prices to earn more taxes.

Malik ul Quddoos

Karachi